Prasetiya Mulya : Human Capital & Strategy International ...pmbs.ac.id/hcsic/assets/files/Kelly - Prasetiya... · In an age of uncertainty, workers are more concerned about whether

Prasetiya Mulya : Human Capital & Strategy International ConferenceJakarta, 10 November 2016

Millennials Aspirations

Want to be empowered and seek challenge

Enjoy teamwork & communities

Want continuous feedback

Want to play active role in their own development

Committed to companies that share same values

Combine professional & personal life

Don’t have life long loyalty to the company

Generation Y – the Millenials – will represent half of the workforce by 2020 and three quarters by 2025

Evolving career development paradigmsOld paradigm : Productive Employment

Economic cycles ; security & loyalty

Expand permanent workforce

Structured single teams in single locations

Baby Boomers seek security & continuity

Lengthy tenure & one skill set

Loyal to 1 or few employers

Company driven career progression

Learning through traditional in-class methods

New paradigm : Potential Employability

Dynamic economies, technology impacts : shorter timeframe &employment uncertainties

Scalable & variable workforce

Technology enabled flexible work locations

Millenials are comfortable with multiple jobs

Careers span multiple employers, skill sets & industries

Multiple employers, different status (contract / freelance)

Talent proactively lead their own careerprogression

Technology led learning methods

“Job life cycles have shrunk now to their shortest period

of time that they ever had in human history. The ability of

a job to persist, requiring the same skills and the same

context, is down to 5 – 7 years with more room to shrink.

The need for workers to retrain and upskill has never

been higher. But we don’t have the fallback in our

companies because the tenure of employees has never

been smaller. When we talk to millennials, they plan to

stay at a company for 3 – 5 years.”

—Kelly Services CEO Carl Camden

There’s an inherent paradox in the new paradigm: To gain competitive advantage, an employer has to

focus learning/development investments on the most valuable and most agile/mobile talent.

The new employability paradigm

Focus career development on your most critical talent who are:

Most engaged/most productive / Most digitally savvy / With critical skill sets that are in short supply

The rise of recruitment marketing in the era of career

resilience

Candidates now take on their job searches primarily via online

Organizations need to built a strong presence through online

channels

Your Employer Value Proposition (EVP) is critical to market your

brand effectively

Employer branding fosters career resilience

With top talent becoming increasingly mobile, improving an organization’s

employer branding keeps it competitive for the best talent.

Keeping skills current is a top concern

In an age of uncertainty, workers are more concerned about whether they have the up-to-date skills needed to remain employable over the long term than they are with losing their current job.

Overall, 56 percent of workers say they are more concerned about their knowledge/skills becoming obsolete or outdated than they are about a possible layoff.

Keeping skills current is

a top concern

Professional/technical (PT) workers represented more than half of the workers surveyed in APAC, and several PT disciplines reported meaningfully higher than average concerns with skills obsolescence versus layoffso 74 percent of finance and accountingo 73 percent of ITo 70 percent of engineering workers.

Geographically, APAC workers are significantly more concerned with skills remaining current

*Excluding Greater China and Japan

The vast majority of workers want to grow their skill sets

The vast majority of workers want to grow their skill sets

An employer who offers opportunities to acquire new/cutting edge skills and capabilities is attractive to a growing number of employees, and these opportunities can be decision drivers in selecting new positions or employers.

Indicated below are those cohorts who value these skills development criteria meaningfully higher than the average.

Employer investment in training/development

is falling short

Employer investment in training/development

is falling short

PT talent is at greater

retention risk

The gap between talent’s desire for skills development and employer offerings creates a retention risk among PT talent—IT in particular—and among baby boomers, to some extent.

PT talent PT talent considers itself more in demand (64 percent) versus the average global worker (58 percent), increasing the likelihood of their leaving for greener pastures if their expectations are not met.

IT talentIT talent is confident in its market value and ability to find a new/better position: • 71% of IT talent feel in demand, vs. 58% global

average • 78% feel their skill set and experience puts them in

a position to compete effectively with other job seekers, vs. 74% global average

Baby Boomers Baby Boomers are feeling less confident than other workers: • 60% of baby boomers feel if they were to consider

changing jobs, they are in a good position to secure a similar or better position of employment, vs. 64% global average

Professional/technical talent challenging the status quo

PT workers are at the leading edge of the DIY career paradigm: The opportunities to close skill gaps and showcase their skills will be an enticing factor for talent. When competing for the talent that knows it has other options, communicate these opportunities.

For PT talent, traditional approaches of attraction are no longer enough. Above average appetite to innovate and be exposed to the latest technologies are attraction factors worth leveraging.

Professional/technical talent challenging the status quo

PT workers use career development resources DIY-style at higher rates than average worker

PT workers outscore the average on components of talent agility and confidence

They are well aware of their market power/value, so if they are dissatisfied, they know they can find something better somewhere else.

Gaps in skill development opportunities create risk

for employers

Yet …The good news for employers Committed employees are more likely to want to build skills and engage mentors.

Committed employees work hard for their employers.

Committed employees are more likely than average workers to feel valued by their employer, and, in return, feel more loyal.

The solution is creating strong employee engagement.

“Highly engaged,” or committed workers are passionate and driven. They are high contributors, but also have high expectations—they know their own value and want to succeed on their own terms.

Millennials and the DIY career mindset

Career development opportunities are key drivers in choice of positions/employers• Opportunity for advancement (73%)• Training/development programs (66%)• Opportunity to work with colleagues who are

recognized as knowledgeable and from whom they can learn (56%)

• Leadership development (45%)• Opportunity to innovate/work on innovative

projects/initiatives (45%)• Exposure to latest technologies and top

equipment (37%)

Known for “slash” careers/multiple gigs and income streamsMillennials often juggle multiple jobs—one that largely pays the bills, combined with others that satisfy their creative urges or allow them to contribute to causes that interest them.

Freelancing is common, and an accepted way to advance a career• 27% of millennials call themselves free agents,

with nearly 2 out of 3 considering free agency a lifelong career choice.

• 52% of millennial free agents are satisfied with their opportunity to expand skills—significantly higher than the 42% of traditional millennial workers.

• 48% of millennial free agents are satisfied with their opportunity to advance in their field/career.

Entrepreneurial urge is strongA 2011 survey funded by the Kauffman Foundation found that 54 percent of the nation’s millennials either want to start a business or already have started one. .

Millennials and the DIY career mindset

Committed to staying on cutting edge of technology, keeping skills current• 63% of millennials feel strongly that their skills/knowledge need to evolve and grow in order to

keep up with changes in their line of work or industry.

Most likely to use, and praise, employer-sponsored learning opportunitiesMillennials outscored other generations on their use of employer-sponsored training (with 48 percent taking advantage of the opportunity) and also tended to be more satisfied with the training offered than other generations.

Millennials also had the highest participation rate (42 percent) of any generation in recent career discussions with their employer, matched with the highest percentage strongly agreeing the discussion was beneficial in terms of future advance opportunities (29 percent) and skills development (36 percent).

Limited loyalty to current employer for career developmentOnly 14 percent of millennials would place their loyalty with their employer as a means to develop, grow, and pursue their career goals, versus 15 percent of Gen X, 18 percent of baby boomers, and 19 percent of the silent generation. At 28 percent, millennials are twice as likely to place their loyalty with their personal/professional networks and relationships instead.

And they’re highly networked. While baby boomers and others are jumping on the social networking bandwagon, millennials have an average of 319 Facebook® friends versus 120 for baby boomers.

Talent wants—needs—to stay fresh with skills; their workflow depends on it, and even more with free agent workers.

So organizations need to build a strong brand reputation that attracts those that are continuously working to stay on top of their game.

Recommendations: The era of DIY career

development is well on its way

Replacing the tradition of employment is employability—and a new work covenant where do-it-yourself (DIY) career development is required.

Governing principles for talent managers on DIY career development: Understand talent supply chain management Study your organization’s talent needs to build resilient teams in a multi-sourced globalized environment, leveraging your best human capital—which relies on individuals’ capabilities, knowledge, skills, and experience from within and outside the organization.

Employer’s responsibility Give talent a place/opportunity for skills to be used and showcased, allowing talent to build a portfolio and increase employability.

Talent responsibility Workers must perform to make the covenant work. Self-awareness/assessment is required to identify gaps and demonstrate technical and soft skills.

Employer branding As workers place more attention on their personal brands, it is increasingly important for employers to put out a clear and compelling employer brand to draw the best talent possible, with the best fit.

Innovative engagement beyond retention Employers need to offer ways for potential, current, and past employees to engage with the company, from training/development opportunities to online communities.

Encourage work-life design Create an innovative, collaborative work environment to increase productivity to engage their passion, take risks, and practice/showcase their skills.

Thank You